A side effect of the tariff escalation imposed by the Trump administration on imports from China is already strongly impacting operations at Amazon.
Hundreds of sellers on the giant e-commerce platform have passed on to consumers the increased costs resulting from the new taxes, leading to price hikes that in some cases exceed 30%.
According to data collected by the analysis firm SmartScout, 930 items have experienced an average increase of 29%, with price rises covering everything from diaper bags and fridge magnets to costume jewelry, kitchen utensils, and toys.
Clothing, jewelry, home products, office supplies, and small electronic devices are among the categories most affected by the rise in import costs.
The pressure largely falls on the 60% of sales that Amazon channels through its external seller platform, many of whom, based in China or dependent on Chinese suppliers, operate with slim margins.
In addition to the increase in tariff burdens, there are rising fees for storage and logistics, shipping costs, and advertising investments within the same marketplace, which leaves merchants with no room for maneuver.
Amazon's CEO, Andy Jassy, acknowledged in an interview with CNBC that, although the company will "do everything possible" to mitigate the impact, some sellers will be forced to pass on the extra cost of tariffs—currently set at 145% for most Chinese products—to the final consumer price.
Jassy indicated that Amazon will renegotiate terms with certain suppliers, but admitted that the solution will not be universal.
The Zulay Kitchen case in Florida: relocation of production and layoffs
In Florida, Zulay Kitchen, a seller of kitchen appliances manufactured in China, faces the challenge of redefining its supply chain.
Aaron Cordovez, co-founder of the firm, details to CNBC that they plan to relocate manufacturing to India, Mexico, and other markets with lighter tariffs, but the process will take at least one or two years. In the meantime, they have had to let go of 19% of their workforce, cut back on digital marketing investment, and of course, raise prices for customers.
Some sellers choose to implement moderate price increases gradually over several weeks or limit adjustments to essential products. The goal is to avoid being penalized by Amazon's algorithms, which determine the buy box—the virtual showcase that decides which offer appears first—and to prevent losing rankings in search results.
Amazon, for its part, reminds that it maintains its pricing policies intact: "Sellers set their own prices, and we highlight the best offers as 'Featured Deals' to provide customers with low prices across a wide selection," a spokesperson noted in a statement.
A blurred negotiation horizon
In parallel to these adjustments, the White House has attempted to project optimism about a possible agreement with Beijing that would reduce the current tax rate of 145% to a range of 50–65%.
President Donald Trump stated that senior officials from the United States and China are meeting "constantly" to work towards a deal, although he refused to specify the participants or dates.
Beijing has, however, strongly denied those statements. The spokesperson for the Ministry of Commerce, He Yadong, stated that "there are no ongoing trade negotiations" and dismissed the reports of progress in the talks as "speculative."
For his part, Guo Jiakun from the Ministry of Foreign Affairs classified Trump's claims as "fake news" and called for dialogue "on the basis of equality and mutual respect."
This clash of perspectives keeps merchants and consumers on edge.
Many sellers with six months of inventory are placing their hopes in a negotiated outcome, while adjusting prices and promotional strategies to weather the tariff storm.
Until then, increases of up to one-third in the cost of everyday products have become a new source of tension in the digital economy and a litmus test for the resilience of small and medium-sized enterprises on the Amazon platform.
Frequently asked questions about the impact of Trump's tariffs on Amazon and international trade
Why are Amazon sellers raising the prices of their products?
Amazon sellers are raising prices due to the tariffs imposed by the Trump administration on imported products from China. These tariffs have significantly increased import costs, leading many sellers to pass these increases on to the final price of products. According to data from SmartScout, some items have seen price increases of up to 30%.
What products on Amazon have been most affected by tariffs on China?
The products most affected by the tariffs include clothing, jewelry, household items, office supplies, and small electronic devices. These products have experienced price increases due to the rise in import costs resulting from the new tariffs. Additionally, categories such as diaper bags, refrigerator magnets, and toys have also seen an average increase of 29%.
How is the trade war between the United States and China affecting Amazon?
The trade war between the United States and China is impacting Amazon by forcing its sellers to raise prices due to high tariffs. These tariffs, which reach up to 145%, have increased import costs, and many sellers are compelled to pass these costs onto the final prices for consumers. Despite Amazon's efforts to mitigate these effects, price increases are unavoidable.
What measures are Amazon sellers taking to address tariffs?
Some Amazon sellers are looking to relocate their production to countries with lower taxes, such as India and Mexico. Others are implementing incremental price increases or limiting adjustments to essential products in order to maintain competitiveness on the platform. One example is Zulay Kitchen, which is considering moving its manufacturing out of China and has had to reduce its workforce and raise prices in the meantime.
Is there any ongoing negotiation between the United States and China to reduce tariffs?
There are no ongoing trade negotiations between the United States and China to reduce current tariffs. Although the White House has tried to project optimism about a possible agreement, Beijing has denied these claims and asserts that there are no talks taking place. The lack of negotiations keeps uncertainty for traders and consumers.
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